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<br />~. <br /> <br />Bijou Irrigation Company <br />September 18-19, 2007 <br /> <br />Agenda Item 18b <br /> <br />* Operating deficits covered by reserve funds. <br />* * Value is not applicable (N/A) since the Company has no existing debt. <br />*** Average annual Sijou Canal delivery of 6,920 AF, plus 27,870 AF total augmentation plan <br />delivery, plus 7,000 AF carriage for Putnam Ditch. <br /> <br />The ratio of Cash Reserves to Current Expense is in the weak category, but it is fairly typical <br />practice for ditch companies, and other irrigation organizations, not to carry large cash reserves <br />from year to year. <br /> <br />As security for the loan, the Company will pledge its annual share assessment revenues, backed by <br />a rate covenant, and the project itself. This is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $763,560 ($756,000 for project costs and $7,560 for the 1 % <br />Loan Service Fee in accordance with CWCB Loan Policy #16), to the Bijou Irrigation Company from <br />the Severance Tax Trust Fund Perpetual Base Account, to rehabilitate the Bijou Canal diversion <br />structure on the South Platte River. The recommended terms of the loan are 30 years at 2.25 % per <br />annum. Security for the loan will be a pledge of annual share assessment revenues, backed by a rate <br />covenant, and the project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br /> <br />cc: Denice Wagner. Secretary, Bijou Irrigation Company <br />Brent Nation, P.E., Nation Engineering Services, LLC, Fort Morgan, CO <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCS on September 19. 2007 <br /> <br />The CWCB approved the Staff Recommendation. <br /> <br />Page 5 of 5 <br />